Frankenmuth Insurance will be issuing one-time Michigan Catastrophic Claims Association (MCCA) surplus refunds to eligible personal and commercial auto policyholders in March.

The MCCA’s Board of Directors unanimously decided to return approximately $3 billion of its estimated surplus to its member insurance companies to refund to policyholders, due to realized and expected savings from the 2019 reforms to the Michigan auto no-fault law and higher than projected investment returns. In addition to this surplus refund, the reforms to Michigan’s auto insurance system have saved Michigan families and businesses $1 billion in MCCA fees over the last two years.

The refund will be $400 per insured motor vehicle and $80 per historic vehicle. This refund is provided for eligible commercial and personal vehicles on policies that met the minimum insurance requirements for operating a vehicle on Michigan roads. There is no action your customers need to take to receive this refund.

It is our intention to mail refund checks to auto policyholders in March, upon receipt of funding from the MCCA. We’re projecting a mid- to late-March mail date, but should we receive funding sooner, we’ll communicate a revised timeline.

To help your agency respond to customer inquiries related to auto refunds, we have developed a feature in iBIS Agency Services, which allows you to view a customer’s refund information, including eligible vehicles, the status, and the amount. This can be accessed from the Policy Search and can be found on the Policy Information page under Policy Actions, by selecting the MCCA Refund option.

For more information about the MCCA refund, view our FAQ document or visit fminsdevelopment.com. For questions, feel free to contact your field manager or underwriter.